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Cane supply shake-up could stretch further

Sugar millers want a greater role in selling the cane that goes across their rollers, but growers are not happy.

ABC

The shockwaves caused by a deal struck between a group of far north Queensland growers and a rival milling group could reverberate to other cane growing districts amid a power struggle about the way the industry sells its sugar.

Tableland growers have opted to bypass their own mill, owned by MSF Sugar, rather than be forced to break a longstanding relationship with Queensland Sugar Limited (QSL), which sells most of Australia's sugar.

MFS Sugar denies it was forcing growers to cut ties with QSL, but there is mounting disquiet in the Babinda and South Johnstone growing areas near Innisfail, where MFS also owns mills.

Innisfail Canegrowers chairman Joe Marano says now more than ever the miller should be listening to growers concerns about the future of sugar marketing.

"I have repeatedly said to MFS that we're happy for them to mill our sugar, but we just don't want them playing with our wallets," he said.

"We have a stake in QSL that's owned by growers and millers, so why wouldn't we go with a company we have a stake in?